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Balance Scorecard

Student Name

Course Name

January 9, 2021
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Balanced Scorecard

Definition

A balanced scorecard is a strategic management efficiency measure for recognizing and

developing different internal business roles and results. Balanced scorecards for evaluating and

offering organizational input are used[CITATION Aur18 \p 191-215 \l 1033 ].

Summary

This paper is to analyze the business scorecard in small businesses. This paper aims to

evaluate and incorporate balance scorecard logic (BSC) application into business networks that

define functions and use those performance metrics resources to build SMEs together. Thus the

paper looks at an effective case study of an Italian small business network and assesses how

BSC's multidimensional viewpoint can help the strategic and organizational network

management convey financial and additional financial results to stakeholders. The research

consists of a qualitative approach, which proposes to use the BSC model for international

literature business networks. Several meetings and interviews have been carried out, along with

triangulation with primary and secondary records. Selena Aureli (Ph.D., assistant professor at the

University of Bologna); Andrea Cardoni (Ph.D. assistant professor at Department of Economics,

Finance, and Statistics); Rosa Lombardi (Ph.D. assistant professor at Associate

Professor, Sapienza University of Rome) and Mara Del Baldo (Ph.D., Associate Professor of

Financial Accounting and Entrepreneurship and Small Business Management). The article

demonstrates how BSC network logic can play a key role in identifying network missions,

supporting management control, and evaluating and reporting intangible assets' development

over the life cycle of network development. This is the first time a BSC integrated business
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networks system consisting of SMEs has been implemented. The case study shows the

operational importance of BSC in establishing and succeeding SMEs[CITATION Aur18 \p 191-

215 \l 1033 ].

Discussion

I have selected this article because in which provides the use of a balanced scorecard in

small businesses. The BSC was created and presented in a multidimensional measuring device.

Its primary aim was to educate managers on strategic decision-making more and better. The

initial BSC was mainly concerned with the integration of financial and non-financial

performance measures. The BSC was originally intended as a performance assessment facility,

defined by the suivants: Balanced usage of financial and non-financial indicators monitoring

performance. Focus both on short- and long-term targets (e.g., customer satisfaction or other

stakeholders); the introduction of metrics that quantify success factors and therefore favor an

indicator of potential market performance (leading indicator) with indicators for previous results

(lagging indicator); Flexibility in its architecture (perspectives and indicators should be

generated and updated in line with company strategy) and its adaptability to any organizational

context.

I highly agree with the authors' key position because the authors provide useful

information about the balanced. The BSC's ability to encourage management to recognize and

measure all possible success factors, including those of an intangible nature that helps build

value, is also very important in network contexts. Socialization processes and information

sharing between partners are more or less deliberately enabled in reticular contexts. BSC may

help understand the importance of these immaterial tools in establishing a sustainable

competitive advantage.
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The article was easy to understand because the authors use simple language and clearly

define the balanced scorecard concept in small and medium-sized businesses. The BSC also

emphasizes external powers, especially the main stakeholders who move material and immaterial

resources to ensure that their unique demands are met.

From my perspective, the authors have done well by using the appropriate methodology

for describing the balanced scorecard method. The BSC is also useful in the field of cooperation

networks. Even when a principal shareholder plays a dominant position in this system, the BSC

can connect and track the levels of satisfaction required to sustain and stabilize the network with

all partners, vendors, clients, and network funders. The BSC can explain how the participating

companies' resources contribute to the network strategies, favor discussion and socialization

between the value chain participants, and balance the different partners' interests[CITATION

Aur18 \l 1033 ].

The author could also contain the benefits of carrying out and using BSC. Since the use

of BSC is not effective for all business organizations. The implementation of BSC logic

facilitated the creation and stability of a network. The significant role played by the network

manager and the academic net worth spin-off in specifically incorporating strategic strategy and

performance metrics, financial and non-financial indicators, in this regard, cannot be overlooked

in this respect. In that sense, the management team succeeded in overcoming the traditional

vulnerabilities of small and medium-sized companies. The owner and company intuitively

combine financial indicators with nonfinancial indicators.

References
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Aureli, S., Cardoni, A., Baldo, M. D., & Lombardi, R. (2018). The balanced scorecard logic in

the management control and reporting of small business company networks: A case

study. Journal of Accounting and Management Information Systems, 12(2), 191-215.

Retrieved from http://eds.b.ebscohost.com/eds/detail/detail?vid=0&sid=6f39ecdc-d879-

4737-982c-e74d41472a45%40pdc-v-sessmgr03&bdata=JkF1dGhUeXBlPXNzbw%3d

%3d#AN=129992236&db=buh
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Authors Credentials

Aureli, S., Salvatori, F., & Magnaghi, E. (2020). A country-comparative analysis of the

transposition of the eu non-financial directive: an institutional approach. Accounting,

Economics, and Law, 10(2). Retrieved from

https://www.researchgate.net/publication/340329713_A_Country-

Comparative_Analysis_of_the_Transposition_of_the_EU_Non-

Financial_Directive_An_Institutional_Approach

Baldo, M. D., Lombardi, R., & Aureli, S. (2020). Nonfinancial reporting regulation and

challenges in sustainability disclosure and corporate governance practices. Business

Strategy and the Environment, 29(1). Retrieved from

https://www.researchgate.net/publication/340954541_Nonfinancial_reporting_regulation

_and_challenges_in_sustainability_disclosure_and_corporate_governance_practices

Cardoni, A., Kiseleva, E., & Luca, F. D. (2020). Continuous auditing and data mining for

strategic risk control and anti-corruption: Creating "fair" value in the digital age.

Business Strategy and the Environment, 29(2). Retrieved from

https://www.researchgate.net/publication/342415540_Continuous_auditing_and_data_mi

ning_for_strategic_risk_control_and_anticorruption_Creating_fair_value_in_the_digital_

age

Lombardi, R., Trequattrini, R., & Cuozzo, B. (2020). Knowledge transfer in the football

industry: a sectorial analysis of factors and determinants. Management Decision ahead-

of-print. Retrieved from

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https://www.researchgate.net/publication/339985111_Knowledge_transfer_in_the_footba

ll_industry_a_sectorial_analysis_of_factors_and_determinants